Jan. 11, 2015 by

It's one thing to hear "it's not about the money", from a mentor; but I CAN'T STAND when founders of start-ups tell me this. 

If you don't think it's about money ... you're not going to do very well in business. "Cashflow is the blood of a business. Your business WILL die without it." No one likes to work for free. For a few months, maybe. But years of working for free, just isn't feasible or very smart. Everyone needs to pay bills and bills cost money. If your business isn't producing cashflow, it will die because you need to do some other activity to pay your bills. 

When your business is making NO money

Anyone that says 'it's not about money' is TOO COMFORTABLE. Either their job pays them enough or there is some other source of money (funding, family, etc). They don't know what it's like to HURT for money. To hurt for money means: 

  • Your stomach hurts because you literally can't afford to buy food during the day. 
  • Your parent's business crashed, so they can't help you with payments. 
  • The highest your gas tank reaches is a 1/4 tank because you can't afford a full one. 
  • Your bank account ACTUALLY floats around $0.00, no back up savings. 

When you are **hurting** for money, IT ISSSSSS ABOUT MONEY. And when you have no other source of income, it lights a fire under your ass. You don't care about parties, sports, movies, etc. All you care about is figuring out how you are REALISTICALLY going to make some money. 

When your business is making money =D 

Once your business starts producing cashflow, money is one of the BEST metrics you can use to check growth. Are you making $50, $500, or $5k a week? It's a great reality check because money is REAL. When I first started SDSU EE Tutor, I charged $20/hr and had 1 client (about $80/week). Last semester, I charged $50/hr and had more than enough clients ($500-$800/week). The reason I had such success was I focused on money. Every week I wrote down how much I made and brainstormed how to make more. I tried to be as specific as possible. I would literally write down the people's names that I thought needed tutoring, then tried to contact them to see if them needed help. 

To every Yin, there is a Yang

There is the argument of greed and 'being consumed by money'. You shouldn't do things in business that are morally wrong to make a profit. That's bad. But that's not the point I am trying to make. All I am trying to say is I wish there was a bit more hunger in the entrepreneur community to make a profit. Wanting to make millions to afford luxury is more of a goal, than greed. Can't blog forever, back to making money! 

Drew Haines "People lie, numbers won't."

Spend time consulting, not tracking time.


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